Brian Riedl of The Heritage Foundation has ten questions about the “Economic Stimulus Bill.”
#10 Mayors have pledged to spend stimulus funds on items such as a mob museum in Nevada, a polar bear exhibit in Rhode Island, and curbing prostitution in Dayton, Ohio. As National Review asked, how come one Bridge to Nowhere is a national embarrassment and 1,000 Bridges to Nowhere are a “stimulus?” Given the 11,000 annual earmarks, why should taxpayers trust politicians to spend this money better than they would spend it themselves?
# 8 The economy sank because people over-borrowed for houses they couldn’t afford, and financial institutions over-borrowed for investments they badly misjudged. Washington’s solution is to borrow $800 billion that it cannot afford. How will adding $800 billion to the national debt (which will also raise interest rates) solve a recession created by imprudent borrowing? And who will bail out the American taxpayer when the bill comes due?
Why can’t we solve our current debt/economy problem by doing something reasonable, like selling California to private investors? (via World)
Investing in California…. Now that sounds like a Ponzi scheme.
The bill might fail to stimulate the entire economy. However, I’m sure it will help the parts that politicians consider most important: lobbying and PR.
I could be wrong, but my personal bet is they’ll overdo it, giving us a bout of inflation. If the Federal Reserve is amenable, the government doesn’t have to tax or borrow the money – it can create it out of thin air and accounting entries. In the short term, that’s more politically expedient.
In the long run, having a clear Liberal such as Obama in the white house at this time may be the best thing for the Conservative cause. People feel their wallets.
I hope you’re right, Ori, but liberals seem to be able to get credit all kinds of things they don’t accomplish, so they could do some smart things here or there, avoid disaster, and be praised as leaders, while our guys are being forced out of office for using obscure words like Maccaka (however you spell it).